Stonehaven comes back to equity release sector
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Stonehaven returned to lending in the equity release market last week, with other providers expected to follow suit this year.
The lender withdrew from the market in March 2010 as a result of its funding drying up.
It has not revealed the identity of its new funding line or its size.
Simon Chalk, later life planner at Lifetime Living, has welcomed Stonehaven’s return and says he’s been in discussions with three other providers in recent months that are looking to re-enter the sector.
He says: “We are optimistic we will end the year with more providers than we started out with.”
A number of equity release pro-viders withdrew from the market last year, including Northern Rock, Coventry and Saffron building societies, Prudential and Retirement Plus.
Duncan Young, chief executive officer of Retirement Plus, says supply will create greater demand in the sector so he would like to see more providers relaunch.
He says he does not want to pre-empt his firm’s return to lending in case he is proved wrong.
But he adds: “We are edging towards a relaunch but we are not there yet.”
Stonehaven’s range includes an Interest Select option, which allows borrowers to pay back some of the interest each month, along with a guaranteed equity option.
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